Market news
07.11.2024, 14:09

BoE: Cut rates as widely expected – TDS

The Bank of England cut Bank Rate today by 25bps, as universally expected. The vote was 8-1 in favour, with one dissent to hold from Mann. Guidance was left broadly unchanged, with the MPC noting that ‘a gradual approach to removing policy restraint remains appropriate’, TDS’ macro analysts note.

BoE guidance virtually unchanged

“As nearly universally expected, the Bank of England cut Bank Rate today by 25bps to 4.75%. The vote to cut was decisive, at 8-1. The MPC's analysis of the recent budget yielded a substantial boost to growth and inflation, reinforcing its guidance of gradual cuts.”

“The upgrades to inflation and growth were met with unchanged guidance. This left rates markets with a rather blurry picture. We still think that the BoE decision should help somewhat to calm the rates space after last week's budget. Trading wise we favour steeper 2s10s curves.”

“The GBP strength from the BoE decision can be short-lived with the risk of hawkish FOMC and the looming risk of US election implications. GBP positioning is still more optimistic than non-USD peers making it vulnerable to a correction. We like GBP lower vs USD and JPY.”

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location